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Strategy to provide electric stoves in subsidy to reduce mounting cost for LP gas import

३ जेष्ठ २०८३, आईतवार १६:५१

By Ramesh Lamsal, Kathmandu, May 17: The government has introduced a strategy to end grants for LP gas by the fiscal year, 2092/93 and provide subsidy in electric stoves.

In view of mounting cost for LP gas import, the government made public the Energy Consumption Growth and Export Strategy, 2083. The strategy made public by the Ministry of Energy, Water Resources and Irrigation has aimed at gradually reducing the use of LP gas. In order for enforcement of this plan, the consumers would be provided grants to electric stove and promote clean energy consumption.

The Customs Department recorded the import of cooking gas worth Rs 41.65 billion in the first nine months of the current fiscal year. A total of 4.1 million metric tons of cooking gas was imported during this period.

It was an alarming cost that the country spent Rs 62.58 billion to LP gas in the fiscal year 2081/82. The amount of the fuel was 5.5 million metric tons. Earlier in the fiscal year 2080/81, the government paid Rs 55 billion in cooking gas import.

According to Nepal Oil Corporation, the government authority to import, supply and regulate fuel, the cooking gas worth 48,000 metric tons is being imported every month in the current fiscal year. NOC has recorded a loss of Rs 331.25 per cylinder. LPG is sold for Rs 2,160 per cylinder now.

At a time when a huge amount of remittance sent by the Nepali workers with backbreaking jobs abroad is spent on import of fuel, it has been a cause for concern.

The Ministry brought forth Strategy in order to address this very issue. The Ministry of Industry has also been designated as the responsible agency to enforce the strategy. The Ministry of Finance and the Ministry of Energy have established coordination to accomplish the project, setting the deadline of fiscal year, 2092/93.

In this connection, the Nepal Electricity Authority has already launched a campaign to boost the use of electric stoves for cooking. Local levels have also joined the drive. The Strategy states that the use of electric stoves is being promoted not only public health but also for economic benefit the country.

The Authority is strengthening the capacity of transmission lines, modernizing transformers and transmission networks so that it would contribute to smooth supply of power and promote use of electric stoves.

Minister for Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, had directed the bodies concerned to make the Strategy more objective and scientific so that it would be result-oriented. According to the Ministry of Energy, the total installed capacity of hydropower in Nepal has reached 4,296 megawatts so far. It would reach 4,500 megawatts by the end of current fiscal year. Per person power consumption has reached 450 kilowatts.

At a time when Nepal is exporting around 2,918 GW electricity, the government is for giving a boost to use of electric stoves, thereby increasing domestic consumption of power. There is also a policy to encourage the use of electric vehicles, including charging stations for the public vehicles. For this charging stations would set up widely across the country. The Authority and the private sector would cooperate for it.

The policy and necessary infrastructures would help in expanding the use of electric vehicles across the country.

A policy has also been forwarded to replace coal boilers with electric boilers and furnaces. Modernization of agricultural sector is planned by providing discounts on electricity tariffs to farmers and agro-entrepreneurs. Such subsidy is expected to encourage the farmers.